<p>Scribners Corporation produces fine papers in three production departments
ID: 2385942 • Letter: #
Question
<p>Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying Department follow:</p><p> </p>
<table cellspacing="0" cellpadding="0" width="520">
<tbody>
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<td> </td>
<td> </td>
<td colspan="2">Percent Completed</td>
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<tr bgcolor="#d7dce6">
<td width="55%"> </td>
<td width="15%">Units</td>
<td width="15%">Pulping</td>
<td width="15%">Conversion</td>
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<tr>
<td>  Work in process inventory, March 1</td>
<td>5,500</td>
<td>100%</td>
<td>17%</td>
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<tr bgcolor="#f7f7f7">
<td>  Work in process inventory, March 31</td>
<td>6,900</td>
<td>100%</td>
<td>17%</td>
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<td colspan="4">
<hr size="5" />
</td>
</tr>
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<p> </p>
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<tr bgcolor="#d7dce6">
<td colspan="2"> </td>
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<td width="80%">  Pulping cost in work in process inventory, March 1</td>
<td width="20%">$3,000   </td>
</tr>
<tr bgcolor="#f7f7f7">
<td>  Conversion cost in work in process inventory, March 1</td>
<td>$550   </td>
</tr>
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<td>  Units transferred to the next production department</td>
<td>156,400   </td>
</tr>
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<td>  Pulping cost added during March</td>
<td>$800,150   </td>
</tr>
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<td>  Conversion cost added during March</td>
<td>$29,800   </td>
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<td colspan="2">
<hr size="5" />
</td>
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<p> </p>
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<td>
<p>No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department.</p>
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<p> </p>
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<td><strong>Requirement 1:</strong></td>
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<td>Determine the equivalent units for March for pulping and conversion.</td>
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</table>
<p> </p>
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<tbody>
<tr bgcolor="#d7dce6">
<td width="50%"> </td>
<td width="25%">Pulping</td>
<td width="25%">Conversion</td>
</tr>
<tr>
<td>  Equivalent units of production</td>
<td><input class="wk_numeric" name="Q_13252698078588621_ans1" size="7" type="text" />     </td>
<td><input class="wk_numeric" name="Q_13252698078588621_ans2" size="7" type="text" />      </td>
</tr>
<tr>
<td colspan="3">
<hr size="5" />
</td>
</tr>
</tbody>
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<p> </p>
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<td><strong>Requirement 2:</strong></td>
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<td>Compute the costs per equivalent unit for March for pulping and conversion. <strong><span>(Round your answers to 2 decimal places. Omit the "$" sign in your response.)</span></strong></td>
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</tbody>
</table>
<p> </p>
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<tbody>
<tr bgcolor="#d7dce6">
<td width="50%"> </td>
<td width="25%">Pulping</td>
<td width="25%">Conversion</td>
</tr>
<tr>
<td>  Cost per equivalent unit</td>
<td>$<input class="wk_numeric" name="Q_13252698078588621_ans3" size="7" type="text" />     </td>
<td>$<input class="wk_numeric" name="Q_13252698078588621_ans4" size="7" type="text" />    </td>
</tr>
<tr>
<td colspan="3">
<hr size="5" />
</td>
</tr>
</tbody>
</table>
<p> </p>
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<td colspan="2"><strong>Requirement 3:</strong></td>
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<td width="3%"><strong>(a)</strong></td>
<td width="97%">Determine the total cost of ending work in process inventory. <strong><span>(Round your Cost per equivalent unit to 2 decimal places and the final answer to the nearest dollar amount. Omit the "$" sign in your response.)</span></strong></td>
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</tbody>
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<p> </p>
<table cellspacing="0" cellpadding="0" width="650">
<tbody>
<tr bgcolor="#d7dce6">
<td width="50%"> </td>
<td width="16%">Pulping</td>
<td width="16%">Conversion</td>
<td width="18%">Total</td>
</tr>
<tr>
<td>  Cost of ending work in process inventory</td>
<td>$<input class="wk_numeric" name="Q_13252698078588621_ans5" size="7" type="text" />   </td>
<td>$<input class="wk_numeric" name="Q_13252698078588621_ans6" size="7" type="text" />  </td>
<td>$<input class="wk_numeric" name="Q_13252698078588621_ans7" size="7" type="text" />    </td>
</tr>
<tr>
<td colspan="4">
<hr size="5" />
</td>
</tr>
</tbody>
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<p> </p>
<table cellspacing="0" cellpadding="0" width="620">
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<tr>
<td width="3%"><strong>(b)</strong></td>
<td width="97%">Determine the total cost of units transferred to the Finishing Department in March. <strong><span>(</span></strong><strong><span>Round your Cost per equivalent unit to 2 decimal places and the final answer to the nearest dollar amount.</span></strong><strong><span> Omit the "$" sign in your response.)</span></strong></td>
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</tbody>
</table>
<p> </p>
<table cellspacing="0" cellpadding="0" width="650">
<tbody>
<tr bgcolor="#d7dce6">
<td width="52%"> </td>
<td width="16%">Pulping</td>
<td width="16%">Conversion</td>
<td width="18%">Total</td>
</tr>
<tr>
<td>  Cost of units completed and transferred out</td>
<td>$<input class="wk_numeric" name="Q_13252698078588621_ans8" size="7" type="text" />    </td>
<td>$<input class="wk_numeric" name="Q_13252698078588621_ans9" size="7" type="text" />    </td>
<td>$<input class="wk_numeric" name="Q_13252698078588621_ans10" size="7" type="text" />    </td>
</tr>
</tbody>
</table>
Explanation / Answer
Requirement 1. Percentage completed Units Pulping Conversion Work in progress.Mar 1 5,000 100% 20% Units started into production 160,000 Units completed and transferred 157,000 out of department: Drying Work in progress, March 31 8,000 100% 25% Requirement 2. Pulping Conversion Units completed and transferred out of department: Drying 157,000 157,000 Work in progress, March 31 8,000 units x 100% 8,000 8000 units x 25% 2,000 Equivalent units of production in the department 165,000 159,000 Requirement 3 Cost of ending work in progress and units transferred out Pulping Conversion Total Cost Ending WIP: Equivalent units 8,000 2,000 Cost per equivalent unit $0.62 $0.20 Cost of ending WIP $4,992 $394 $5,385 b. Units transferred 157,000 157,000 Cost per equivalent unit $0.62 $0.20 Cost of units transferred out $97,958 $30,906 $128,565
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